“Technology is set to streamline the way trustees seek advice — Canstar Australia already lists four automated services for self-directed investors,” Evolv said.

“While trends suggest it is largely millennials using these services, in time we can expect automated advice to spread. With it comes new auditing considerations like understanding algorithms, determining human liability for algorithm-generated advice, and reviewing liability agreements for companies that employ such technology.”

The firm said it was important for auditors to understand where liability lay for such advice, given the recent Ryan Wealth Holdings v Baumgartner case which found fault with an auditor for not flagging with the trustee that their adviser was not acting in their best interest in the investments they had recommended.

“While the role of the auditor is not to provide financial advice, this industry will nonetheless have a massive bearing on the way auditors conduct their work,” Evolv said.

“Look no further than the recent NSW court case of Ryan Wealth Holdings v Baumgartner, which saw the court rule against an auditor for not having passed judgement on a financial adviser’s conflicts of interest.”

The firm also predicted that a growing number of fund members would seek to move to SMSFs following the royal commission, but that such transitions would be easier for auditors to track than in the past following the introduction of SuperStream.

“The royal commission has seen a widespread trend in people reviewing their options and likely seeking a new provider. For those who make the shift to SMSFs, technology is going to play a massive role,” Evolv said.

“A recent ATO roundtable saw much discussion of SuperStream and the way technology has enabled different funds to effectively speak to one another. This kind of synthesis, as well as funds using shared architecture or software, will enable a much faster, safer and more compliant facilitation of fund transitions.”